TORONTO, March 10, 2015 /CNW/ - Atlanta Gold Inc.
(TSXV: ATG; OTC Pink: ATLDF) announces that Concept Capital
Management Ltd. ("CCM"), the holder of the Company's
C$3 million 6% convertible debenture
due December 15, 2016, has agreed to
extend the period of forbearance under the previously entered into
forbearance agreement with the Company (see the Company's news
releases of December 22, 2014 and
February 2, 2015) until March 31, 2015. During this period, CCM has
agreed to refrain from exercising any remedies it may have under
the debenture and related documents and the Company and CCM have
agreed to use their reasonable best efforts to negotiate terms to
refinance the debenture. CCM had previously requested that
the debenture be redeemed in accordance with the debenture's early
redemption provisions. Completion of any refinancing
transaction will be subject to the approval of the TSX Venture
Exchange.
About the Company
Atlanta Gold Inc. holds
through its 100% owned subsidiary, Atlanta Gold Corporation,
leases, options or ownership interests in its Atlanta properties which comprise
approximately 2,159 acres (8.74 square kilometres) located 90 air
kilometers east of Boise, in
Elmore County, Idaho. A long
history of mining makes Atlanta
very suitable for development of new mining projects. The Company
is focused on advancing its core asset, Atlanta, towards mine development and
production.
The Company is also focused on advancing its exploration and
processing methods on the Neal Property, which is located
approximately 15 miles from Boise,
Idaho and comprises approximately 192 acres (0.78 square
kilometres). The Neal Property's geology is similar to that of the
Atlanta Project and it provides the Company with all-season access
to further refine the processing equipment and procedures. In
June 2014, Knife River assigned
certain of its rights and obligations under its lease with the
owner of the Neal Property to AGC. AGC staked an additional seven
contiguous claims on public land that was open to mineral
entry.
Forward-Looking Information
This news
release contains forward-looking information and forward-looking
statements (collectively "forward-looking statements") within the
meaning of applicable securities laws with respect to the
refinancing of the Company's debenture. Such are based upon
various assumptions and other factors that management believes to
be reasonable, including that the Company will reach agreement with
CCM and receive the requisite approvals of the TSX Venture Exchange
on a timely basis. Forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
our actual results to differ materially from those expressed or
implied by the forward-looking statements. Risks and
uncertainties that may cause actual results to vary include the
ability to conclude in a timely manner a refinancing agreement on
terms acceptable to the Company and to the holders of the Company's
senior secured notes, the receipt of all requisite approvals to the
refinancing from the TSX Venture Exchange; the ability of the
Company to complete additional financings on acceptable terms;
fluctuations in the gold price and currency exchange rates; changes
in general economic conditions and in the financial markets; as
well as other risks and uncertainties which are more fully
described in the Company's annual and interim management's
discussion and analysis and other filings by the Company with the
securities regulatory authorities, which are available under the
Company's profile at www.sedar.com. Should one or more risks
and uncertainties materialize or should any assumptions prove
incorrect, then actual results could vary materially from those
expressed or implied by the forward-looking statements and
accordingly, readers should not place undue reliance on the
forward-looking statements. Readers are cautioned that the
foregoing lists of risks, uncertainties, assumptions and other
factors are not exhaustive. The forward-looking statements
contained herein are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements contained herein or in any other
documents filed with securities regulatory authorities, whether as
a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
To receive Company news via email, contact info@atgoldinc.com
and mention "Atlanta Gold News" in the subject line.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Atlanta Gold Inc.